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Joel Frank
Author
Joel Frank
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Investors are asking whether the Solana price might be in trouble as it emerges that scammers utilizing the network have discovered a new way to burn tokens inside of a user’s wallet.
That’s according to an X post by Solana influencer and developer Slorg.
In a lengthy thread, he details that a Jupiter community member was recently caught out, with a token they bought burning itself 7 second later.
Slorg explained that the token in question had a feature called “permanent delegate” written into its smart contract, allowing tokens to be burned at will by an address.
He warned that traders must do their due diligence on a token before investing.
Given that meme coin trading is a key drive of Solana blockchain usage, could rising scam risk be a threat to the Solana price?
Token Scams – A Threat to the Solana Price?
On-chain DEX markets across different blockchains are replete with scams and pump-and-dumps.
In fact, traders should assume that all newly launched coins are scams, and never risk more than can afford to lose.
That being said, token scams are neither new nor a unique problem to Solana.
As scammers innovate new ways to rob their victims, this is unlikely to have much impact on the token price.
That said, as the crypto community innovates new ways to build safeguards to protect new crypto token investors, like the newly launched pump.fun protocol, that could drive up meme coin trading activities, which could benefit the Solana price.
But other factors are more important right now.
So What’s Driving the Solana Price?
Those include the evolving macro backdrop and Solana price technicals.
Regarding the former, recession fears have been weighing on risk asset sentiment in recent weeks.
If key US economic data releases scheduled for Thursday and Friday exacerbate such fears, the Solana price could come under pressure.
SOL was last trading around $134, modestly above its multi-month range lows in the $120.
If data pushes back against recession worries, the Solana price could be set up for a strong rebound.
The Fed is set to begin cutting interest rates later this month, and some are predicting this will trigger a wave of new risk-taking.
Republican Presidential nominee Donald Trump is also once again ahead of his rival Democrat nominee Kamala Harris regarding in the betting odds on Polymarket.
Trump is widely seen as the better candidate for crypto markets in the USA.
Solana Alternative to Consider
Uncertainty as to where the Solana price is headed in the short term doesn’t mean it isn’t a great long-term investment.
While already up over 20x from its 2022 lows, the Solana price has plenty of growth left.
But for investors looking for a higher risk, but higher potential rewards alternative, they should check out a new play-to-earn meme game called Shiba Shootout (SHIBASHOOT).
Cryptonews.com’s in-house presale analyst Chester includes Shiba Shootout as one of his presales to watch in the below video.
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
